west contra costa usd
DESCRIPTION
West Contra Costa USD. General Obligation Bond Update Presentation to the Facilities Subcommittee September 9, 2014. Objectives for Today’s Presentation. - PowerPoint PPT PresentationTRANSCRIPT
West Contra Costa USDGeneral Obligation Bond Update
Presentation to the Facilities SubcommitteeSeptember 9, 2014
Objectives for Today’s Presentation
Present new “Base Case” long-term plan of finance scenario for 2010 Measure D and 2012 Measure E new money bonds based on a $135 million issuance in 2015, 4.0% AV growth and $48 tax rate target.
Present alternative long-term plan of finance scenarios assuming! 5.00% and 6.00% AV growth at a $48 tax rate target. $60 tax rate target.
Present tentative schedule for next new money issuance.
Presentation to the West Contra Costa Unified School District Facilities Subcommittee | page
2
Original Base Case: Measure 2010D/2012 E Financing Plan Assumptions: Target tax rate of $48, 4.0% annual AV growth
issuance of $125 million in bonds in alternating years through 2019.
Presentation to the West Contra Costa Unified School District Facilities Subcommittee | page
3
Year Series2010
Measure D2012
Measure E Total
Previously Issued $140,000,000 $85,000,000 $225,000,000
2014-15 Elec. 2010 Ser. CElec. 2012 Ser. B 50,000,000 75,000,000 125,000,000
2016-17 Elec. 2010 Ser. DElec. 2012 Ser. C 60,000,000 65,000,000 125,000,000
2018-19 Elec. 2010 Ser. EElec. 2012 Ser. D 65,000,000 60,000,000 125,000,000
2020-21 Elec. 2010 Ser. FElec. 2012 Ser. E 42,205,011 71,719,572 113,924,583
2045 Elec. 2010 Ser. GElec. 2012 Ser. F 22,794,989 3,280,428 26,075,417
$380,000,000 $360,000,000 $740,000,000
Issuance amounts are subject to change based on future A.V. growth, market conditions, interest rates at the time of sale, and structure assumptions. Bonds after the 2015 issuance may be required to use AB 182 compliant capital appreciation bonds and/or the use of Bond Anticipation Notes.
New Base Case: Next Issue at $135 Million / 4% AV
Growth Under the same assumptions of a $48 tax rate and 4% AV
growth, the new base case increases the first issuance to $135 million from $125 million.
Presentation to the West Contra Costa Unified School District Facilities Subcommittee | page
4
Year Series2010
Measure D2012
Measure E Total
Previously Issued $140,000,000 $85,000,000 $225,000,000
2014-15 Elec. 2010 Ser. CElec. 2012 Ser. B 50,000,000 85,000,000 135,000,000
2016-17 Elec. 2010 Ser. DElec. 2012 Ser. C 60,000,000 65,000,000 125,000,000
2018-19 Elec. 2010 Ser. EElec. 2012 Ser. D 65,000,000 60,000,000 125,000,000
2020-21 Elec. 2010 Ser. FElec. 2012 Ser. E 44,714,718 56,963,559 101,678,277
2045 Elec. 2010 Ser. GElec. 2012 Ser. F 20,285,282 8,036,441 28,321,723
$380,000,000 $360,000,000 $740,000,000
Issuance amounts are subject to change based on future A.V. growth, market conditions, interest rates at the time of sale, and structure assumptions. Bonds after the 2015 issuance may be required to use AB 182 compliant capital appreciation bonds and/or the use of Bond Anticipation Notes.
Presentation to the West Contra Costa Unified School District Facilities Subcommittee | page
5
The 2015 Bonds need to be structured to provide debt service capacity for future bond issuances.
A longer final amortization of up to 40 years using only current interest bonds will help near-term debt service constraints and provide maximum future flexibility.
New Base Case: 2015 Bonds
2015
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
2047
2049
2051
2053
2055
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
Prior Bonds 2015 Bonds
Revenue assuming 4.0% AV Growth, $48 taxNote: Indicative debt structure, subject to change.
Alternative Scenario: Financing Plan with 5% AV Growth At 5.0% AV growth assumption, the District could issue its
entire Measure D and Measure E authorizations on an every other year schedule by the end of fiscal year 2021 and stay within a $48 tax rate target.
Presentation to the West Contra Costa Unified School District Facilities Subcommittee | page
6
Year Series2010
Measure D2012
Measure E Total
Previously Issued $140,000,000 $85,000,000 $225,000,000
2014-15 Elec. 2010 Ser. CElec. 2012 Ser. B 50,000,000 85,000,000 135,000,000
2016-17 Elec. 2010 Ser. DElec. 2012 Ser. C 60,000,000 65,000,000 125,000,000
2018-19 Elec. 2010 Ser. EElec. 2012 Ser. D 65,000,000 60,000,000 125,000,000
2020-21 Elec. 2010 Ser. FElec. 2012 Ser. E 65,000,000 65,000,000 130,000,000
$380,000,000 $360,000,000 $740,000,000
Issuance amounts are subject to change based on future A.V. growth, market conditions, interest rates at the time of sale, and structure assumptions. Bonds after the 2015 issuance may be required to use AB 182 compliant capital appreciation bonds and/or the use of Bond Anticipation Notes.
Alternative Scenario: Financing Plan with 6.0% AV Growth
At 6% AV growth assumption, the 2017 financing can be increased by $10 million and all remaining authorization can be issued by 2021, within $48 tax rate.
Presentation to the West Contra Costa Unified School District Facilities Subcommittee | page
7
Year Series2010
Measure D2012
Measure E Total
Previously Issued $140,000,000 $85,000,000 $225,000,000
2014-15 Elec. 2010 Ser. CElec. 2012 Ser. B 60,000,000 75,000,000
135,000,000
2016-17 Elec. 2010 Ser. DElec. 2012 Ser. C 70,000,000 65,000,000
135,000,000
2018-19 Elec. 2010 Ser. EElec. 2012 Ser. D 65,000,000 60,000,000
125,000,000
2020-21 Elec. 2010 Ser. FElec. 2012 Ser. E 45,000,000 75,000,000 120,000,000
$380,000,000 $360,000,000 $740,000,000
Issuance amounts are subject to change based on future A.V. growth, market conditions, interest rates at the time of sale, and structure assumptions. Bonds after the 2015 issuance may be required to use AB 182 compliant capital appreciation bonds and/or the use of Bond Anticipation Notes.
Alternative Scenario: Financing Plan with $60 Tax Rate / 4.0%
AV Growth A $60 tax rate for five years starting in 2016-17 allows
issuances of approximately $190 million in 2017 and 2019 and the completion of the bonding program in 2019.
Presentation to the West Contra Costa Unified School District Facilities Subcommittee | page
8
Year Series2010
Measure D2012
Measure E Total
Previously Issued $140,000,000 $85,000,000 $225,000,000
2014-15 Elec. 2010 Ser. CElec. 2012 Ser. B 50,000,000 85,000,000 135,000,000
2016-17 Elec. 2010 Ser. DElec. 2012 Ser. C 100,000,000 90,000,000 190,000,000
2018-19 Elec. 2010 Ser. EElec. 2012 Ser. D 90,000,000 100,000,000 190,000,000
2020-21 Elec. 2010 Ser. FElec. 2012 Ser. E - - -
$380,000,000 $360,000,000 $740,000,000
Issuance amounts are subject to change based on future A.V. growth, market conditions, interest rates at the time of sale, and structure assumptions. Bonds after the 2015 issuance may be required to use AB 182 compliant capital appreciation bonds and/or the use of Bond Anticipation Notes.
Summary
At a size of $135 million, the 2015 new money issue can be issued within the constraints of: $48 target tax rate. 4% annual AV growth assumption. Current interest bonds only - no use of capital appreciation
bonds.
For later issuances, the District can consider strategies to access remaining authorization sooner, if necessary, including: Assessed valuation growth assumption in excess of 4%. Target tax rate in excess of $48 per $100,000 of assessed
value.
Presentation to the West Contra Costa Unified School District Facilities Subcommittee | page
9
Preliminary Financing Schedule*Date Activity
September 9, 2014 Subcommittee approval of financing schedule and structure
September 17, 2014 Board approval of financing team
September 18, 2014 Financing Kickoff Meeting
September-October Drafting of legal documents and preliminary official statement
October 15, 2014 Board approval of resolution authorizing sale (1st of 2 required consecutive meetings)
November 12, 2014 Board approval of resolution, legal documents, and preliminary official statement
November-December Drafting of rating agency presentation
Week of January 12, 2015 Meetings with rating agencies
February 11, 2015 Board approval of updated preliminary official statement
Week of February 23 Investor outreach & discussion
February 26 or March 4 Pricing
March 11, 2015 Closing
Presentation to the West Contra Costa Unified School District Facilities Subcommittee | page
10
*Subject to change
Appendix
The District’s Assessed Value The growth in assessed value has been uneven in the recent
past for the District: 30-Year compounded annual growth rate: 4.94% 15-Year compounded annual growth rate: 4.45% 10-Year compounded annual growth rate: 2.23% 5-Year compounded annual growth rate: 0.72%
Presentation to the West Contra Costa Unified School District Facilities Subcommittee | page
12
1985
-86
1986
-87
1987
-88
1988
-89
1989
-90
1990
-91
1991
-92
1992
-93
1993
-94
1994
-95
1995
-96
1996
-97
1997
-98
1998
-99
1999
-00
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
$-
$5,000,000,000
$10,000,000,000
$15,000,000,000
$20,000,000,000
$25,000,000,000
$30,000,000,000